S&P Global Market Intelligence recently released its 2026 US Datacenter and Energy Report, which summarizes the forces that may shape data center and power generation development in the coming year.
Driving Forces
There is a staggering potential for load growth in the United States, with data centers acting as a main driver. By 2026, generation in the United States is expected to hit 4,400 TWh and has the potential to rise to 5,200 TWh by 2030—representing a nearly 24% increase from 2023. This type of load growth is unprecedented in recent times and has not occurred since the 1980s.
Whether the power system can integrate this high-end load scenario is an outstanding question. The nation’s transmission infrastructure is aging. As utilities and power generators race to meet forecasted load, regulators have an enormous challenge to process interconnection requests and ensure the power system continues to operate reliably. The report notes that Federal Energy Regulatory Commission (FERC) Order No. 2023 successfully reduced the number of speculative projects in interconnection queues—citing a more than 50% drop in interconnection requests in CAISO, NYISO, and PJM as evidence that fewer, better vetted projects are in the queue. Yet challenges remain as interconnection processing times remain around 53 months nationally.
Notable Trends
Nuclear
Nuclear energy is experiencing a renaissance in the United States, thanks in part to its ability to provide reliable based-load, carbon-free generation. Numerous hyperscalers announced agreements involving nuclear energy in 2025, including power purchase agreements for capacity from existing facilities and facilities that have retired. As the US administration continues to pursue policy measures to encourage nuclear development, more commercial activity is expected in this sector.
Natural Gas
Natural gas generation appeals to data center owners and power generators given its dispatchability, scalability, and reliability. Year over year, interconnection requests for gas generators jumped nearly 160%. But the sector faces headwinds. Turbine manufacturers are racing to meet the renewed demand for their products. Growing delivery backlogs and rising prices for turbines could shape demand for this significant generation resource in 2026.
Renewables
The One Big Beautiful Bill Act, signed in July 2025, ushered in a massive policy shift for renewable resources, shortening the eligibility of solar and wind projects for lucrative tax credits. Despite the changing landscape, hyperscalers continued to sign deals for solar and wind projects, signing contracts for more than 40 GWs of solar power in 2025. This trend shows no signs of abating in 2026.
Bring Your Own Power
Given the urgency of getting data centers online quickly, developers continue to evaluate how bring-your-own-power (BYOP) solutions could address their energy needs. Developers pursued innovative BYOP strategies in 2025, like deploying mobile gas turbines to meet a data center’s immediate needs and developing partnerships with power generators to develop behind-the-meter baseload for their data centers. As policy changes at FERC reshape co-location policies, there are sure to be more developments in this space.
As these trends show, 2026 will be an active year for the nation’s energy sector. Like last year, growing demand from data centers will continue to be the dominant force shaping events. Our team will continue to monitor developments in this space.